Boston Scientific Is Betting $1.5 Billion on a Massive Market -- and Wall Street Is Paying Attention
Key Points
Boston Scientific acquired a 34% stake in medical device maker MiRus LLC.
MiRus is developing a cutting edge aortic valve replacement system.
Wall Street is bullish on Boston Scientific, as are the company and its insiders.
It's commonplace for companies in the healthcare space to buy their way into new markets and product categories. Boston Scientific (NYSE: BSX), a top healthcare stock and medical device company, recently announced it was investing $1.5 billion in MiRus LLC for an approximate 34% stake in the business.
The investment gives Boston Scientific a foothold in the transcatheter aortic valve replacement (TAVR) market, which Grand View Research estimates could grow from $4.5 billion in 2024 to $12.2 billion by 2033. The announcement happened a week ago, and thus far, Wall Street isn't showing any loss of love for the stock. Of 36 analysts polled by CNN Business, 92% have rated Boston Scientific a buy.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here's more about Boston Scientific's investment, and what it could mean for investors.
Image source: Getty Images.
The fine print reveals that an even bigger transaction could be lurking
Transcatheter aortic valve replacement is a treatment for aortic valves in the human heart that are too narrow to open properly. MiRus is developing the proprietary Siegel TAVR system; it's the first nickel-free, balloon-expandable TAVR valve intended to restore function and normal blood flow to severely narrowed aortic valves.
Boston Scientific will immediately own about a third of the company with this initial investment, but the deal also lays the groundwork for a potential 100% acquisition. If the MiRus TAVR system meets the appropriate milestones, Boston Scientific has the option to pay up to an additional $3 billion to acquire it.
It's a clever deal because it paves the way for the acquisition without risking the full amount should the system ultimately fail. The only real downside is that it won't contribute anything to Boston Scientific's earnings in 2026, so there's no immediate return on that capital.
Wall Street could be following the insiders
Sure, 92% of analysts on CNN Business rate Boston Scientific as a buy, but that alone shouldn't be a reason for an individual investor to buy a stock. It does help the case when insiders, key employees at the company, begin scooping up shares. Regulatory filings on May 21 revealed that three directors at the company recently purchased shares worth a total of over half a million dollars.
Additionally, Boston Scientific recently announced a $2 billion accelerated buyback program, in which it purchases its own shares on the open market ahead of its previously announced schedule. It's a pretty loud signal that management views the stock's valuation favorably.
Wall Street analysts estimate that Boston Scientific will grow earnings by over 16% annually over the next three to five years. The stock is currently a bargain, trading at just 17 times 2026 earnings estimates, assuming earnings grow at or near that pace.
Boston Scientific had already laid the groundwork for growth and was a compelling buy last week. Now, the future could be even brighter, with a groundbreaking new product potentially opening a massive new market for the company.
Should you buy stock in Boston Scientific right now?
Before you buy stock in Boston Scientific, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boston Scientific wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,852!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,207!*
Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 27, 2026.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
Comments (0)
Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.